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Renewable energy – Energy Country Profile

Renewable Energy

Albania adopted its National Renewable Energy Action Plan (NREAP) in 2016 (2015-2020) and revised it in 2018 (2018-2020). It targets a 38% share of renewable energy in final energy consumption in 2020; in 2018, the share of renewable energy in the energy mix was 34.9%. The Energy Strategy 2018-2030 aims to increase the share of renewable energies in primary energy consumption to 42 % in 2030.

A new renewable energy law from 2017 introduced a net metering system for households and small businesses for solar and wind power projects up to 500 kW (electricity fed into the grid is sold at the basic supply price).

A competitive auction process was also introduced for renewable energy projects above 2 MW to sign 15-year contracts for difference (CfD); demonstration projects or projects below 2 MW receive CfD without auction. Albania held three solar PV auctions in 2018 (100 MW), May 2020 (140 MW) and November 2020; the third auction was launched for a 100 MW solar PV project in Spitalle, near Durrës; bids are due by 1 February 2021 and the selected project will sell 70% of the electricity to OShEE and 30% on the market. Small hydropower plants (below 15 MW), solar plants up to 2 MW and wind plants up to 3 MW benefit from 15-year PPAs and feed-in tariffs (FiT). The 2016 NREAP introduces a target of 3% biofuels by 2020 (0.2% in 2020).

In 2021, the government held the first wind auction in the nation, with a maximum capacity of 100 MW that may be increased to 150 MW. In some zones, applications are accepted until February 2023 (no project, for instance, can be implemented below 150 meters of elevation). Contracts for Difference (CfD) will be obtained by awarded projects for power purchases made over 15 years.

Last update: 07 2023